Published on 1/28/2022 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Bank of America sells upsized $700 million 4.75% $25-par preferreds
By Marisa Wong and Cristal Cody
Los Angeles, Jan. 28 – Bank of America Corp. priced an upsized $700 million of 4.75% $25-par series SS non-cumulative perpetual preferred stock (Baa3/BBB-/BBB+), according to a market source.
The deal was upsized from $250 million.
The majority of the offering went to retail investors, the source noted.
According to an FWP filing with the Securities and Exchange Commission, dividends will be payable quarterly.
The shares will be redeemable starting in February 2027, either in whole or in part, at par plus any unpaid dividends.
The bank plans to list the preferreds on the New York Stock Exchange under the symbol “BACPrS.”
BofA Securities Inc. is the bookrunner.
Other banks working to sell shares include J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and TD Securities (USA) LLC.
Proceeds will be used for general corporate purposes.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $700 million, or 28 million shares
|
| Issue: | Non-cumulative preferred stock, series SS
|
| Maturity: | Perpetual
|
| Bookrunner: | BofA Securities Inc.
|
| Joint lead managers: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and TD Securities (USA) LLC
|
| Co-managers: | Academy Securities, Inc., Cabrera Capital Markets, LLC, CastleOak Securities, LP, C.L. King & Associates, Inc., Keefe, Bruyette & Woods, Inc., Mischler Financial Group, Inc., Raymond James & Associates, Inc. and R. Seelaus & Co., LLC
|
| Dividend: | 4.75%
|
| Call option: | Non-callable until Feb. 17, 2027
|
| Trade date: | Jan. 27
|
| Settlement date: | Jan. 31
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB+
|
| Listing: | NYSE: BACPrS
|
| Cusip: | 06055H871
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
